Deciding to file for bankruptcy is never an easy decision, but then life in the past weeks or months hasn’t been much fun either. There have been too many nights looking at piles of bills, deciding what can be put off…again. At least caller id lets you know who’s calling.
Knowing some of the pros and cons of Chapter 7 Bankruptcy might help make it easier to make a decision.
Pros
* Chapter 7 is over fairly quickly, often in less than 6 months. Other forms of bankruptcy or conventional debt repayment programs take years.
* Most possessions will be exempt, as well as money earned and property purchased after the Chapter 7 bankruptcy is filed. A
* Bankruptcy Lawyer in Des Moines
* will be able to explain how Iowa laws apply to your circumstances.
* Some people feel that they are ‘too young’ or ‘too old’ to file for bankruptcy. People of all ages seek this form of protection. Currently, the ‘average’ person filing for Chapter 7 is middle-aged, married and employed. People over 55 now account for about 20% of all bankruptcies. Financial problems affect people of all ages.
* As soon as the papers are filed by a Bankruptcy Lawyer in Des Moines, creditors will stop calling (unless the debt will not be discharged in the bankruptcy). The bankruptcy filing will put an automatic stay on payments to most creditors.
Cons
* The bankruptcy will remain on your credit report for 10 years. However, making payments on time after the bankruptcy will start to rebuild credit, although it will take a while.
* Some banks will offer new credit cards during the first year after the bankruptcy. These cards will have high rates and fees and generally should be declined. Building a rainy day fund in the bank is a much better option.
* Some debts will not be included in the bankruptcy, such as child support or alimony payments. However, with the other debts gone, it should be much easier to get current on those remaining obligations. A Bankruptcy Lawyer in Des Moines can review all the debt and advise as to which ones would remain after the bankruptcy is concluded.
* A Chapter 7 bankruptcy can only be filed once every 7 years.
Deciding whether or not to file for bankruptcy protection is a serious decision. Bankruptcy laws are complex. It would be wise to discuss your individual circumstances with a Bankruptcy Lawyer in Des Moines.
